Across the country, states are seeking new ways to become more economically competitive and better ways to grow. Unfortunately, economic prosperity can be elusive, as some policy prescriptions that are supposed to help miss the mark. All too often, myths about taxes and budgets are prevalent in public-policy debates and misinformation abounds. It is important to set the record straight with the facts regarding which policies allow a state to prosper and which policies can trap a state in economic malaise.